Company Number: 13166598

Analysis Date: 2025-07-20 17:49 UTC

1. Risk Rating: HIGH
   The company shows persistent net liabilities and negative shareholders' funds, with current liabilities substantially exceeding current assets, indicating significant solvency and liquidity concerns despite asset holdings primarily in fixed assets.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net assets are negative (£-39,555 as of 2024), reflecting accumulated losses or undercapitalization, which may impair its ability to absorb financial shocks.
• Poor Liquidity Position: Current liabilities (£1,329,119) vastly exceed current assets (£7,298), resulting in negative net current assets (£-88,846), suggesting potential difficulties in meeting short-term obligations.
• High Leverage Concentrated in Fixed Assets: Fixed assets are significant (£1,378,410) but largely illiquid, with long-term creditors exceeding total assets less current liabilities, raising concerns about the company’s ability to service debt from operational cash flows.

3. Positive Indicators:

• Compliance with Filing Obligations: The company is active and up to date with both accounts and confirmation statement filings, suggesting governance and regulatory compliance are being maintained.
• Continued Asset Growth: Fixed assets increased from £1,077,099 in 2023 to £1,378,410 in 2024, indicating ongoing investment or acquisition activity which might improve future earning potential.
• Sole Director and PSC Stability: The director and sole person with significant control remains consistent since incorporation, which may provide managerial continuity.

4. Due Diligence Notes:

• Review Underlying Asset Quality: Investigate the nature and market value of the fixed assets (likely property investments) to assess realisable value and impact on solvency.
• Examine Debt Terms and Repayment Schedule: Detailed analysis of creditor composition and maturity profile is needed to evaluate refinancing risk and liquidity management.
• Assess Profitability and Cash Flow Trends: Given the negative reserves, scrutinize recent and projected income statements and cash flow forecasts to determine operational viability and turnaround prospects.